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Centre-State Relations and Strains

By ExamAtlas · 9/18/2026

NCERT Class 11 - Indian Constitution at Work, Chapter 7

Centre-State Relations and Strains

Centre-state relations fall under three heads - legislative, administrative and financial. Most federal friction in India arises from the second and third, and from the political use of the Governor's office and of Article 356.

The three kinds of relations

  • Legislative - governed by the Seventh Schedule, with the centre able to legislate on state subjects in the five situations already noted, and central law prevailing on concurrent subjects.
  • Administrative - the centre may give directions to a state on matters such as the construction of communications of national importance and the protection of railways; failure to comply can become a ground for action under Article 356.
  • All India Services officers serve the states but are controlled by the centre, which is a standing source of friction.
  • Financial - the Finance Commission under Article 280, appointed every five years, recommends the sharing of taxes between the centre and the states and grants-in-aid to states in need.
  • The GST Council under Article 279A, added by the 101st Amendment, is a joint forum of the centre and the states for decisions on indirect tax.
  • States also depend on central grants and centrally sponsored schemes, which gives the centre policy leverage in state subjects.

Article 356 and the Bommai case

  • Article 356 allows the President, on the Governor's report or otherwise, to assume the functions of a state government where the constitutional machinery has failed.
  • A proclamation must be approved by both Houses within two months and normally cannot continue beyond three years.
  • Its frequent political use to dismiss state governments made it the single largest federal grievance.
  • In S. R. Bommai v. Union of India, 1994, the Supreme Court held that the proclamation is subject to judicial review, that the majority of a government must be tested on the floor of the House and not in the Raj Bhavan, and that the Court can restore a dismissed government.
  • The judgment also held that secularism is part of the basic structure, and that a state government acting against it may be dismissed.

Federal coordination

BodyBasisFunction
Inter-State CouncilArticle 263Advises on disputes and coordinates policy between states and the centre
Zonal CouncilsStatutory, under the States Reorganisation ActRegional coordination on common concerns
Finance CommissionArticle 280Tax sharing and grants-in-aid
GST CouncilArticle 279AJoint decisions on goods and services tax
NITI AayogExecutive resolutionPolicy forum with the Chief Ministers as members
  • The Sarkaria Commission, appointed in the 1980s, and the Punchhi Commission, appointed later, both examined centre-state relations and recommended restraint in the use of Article 356 and a more consultative approach to appointing Governors.
  • The rise of regional parties and coalition governments from the late 1980s did more than any commission to strengthen federal practice, since the centre came to depend on state parties for its own majority.

हिंदी संकेत: बोम्मई मामला (1994) ने तय किया कि बहुमत की परीक्षा सदन के पटल पर होगी और अनुच्छेद 356 की घोषणा न्यायिक पुनरावलोकन के अधीन है। यह केंद्र-राज्य संबंधों का सबसे महत्वपूर्ण निर्णय है।

Exam me kaise aata hai

Factual questions ask which article covers the Finance Commission and the Inter-State Council, and which case limited Article 356. Match-the-following links body with its constitutional basis. Application questions describe a political situation and ask whether Article 356 would be valid.

UPSC / State PSC ke liye

The strongest argument in an essay is that Indian federalism has been strengthened more by political change than by constitutional amendment - coalition politics, regional parties and the Bommai judgment together made the centre far more cautious. On finance, note the tension between the centre's cesses and surcharges, which are not shared, and the states' demand for a larger divisible pool.

Yahan confuse hote hain

A proclamation under Article 356 cannot be challenged in court  |   Bommai held it is subject to judicial review

The Finance Commission is appointed every year  |   It is appointed every five years under Article 280

The Inter-State Council is a statutory body  |   It is a constitutional body under Article 263

Ek nazar me

  • Relations are legislative, administrative and financial.
  • Finance Commission under Article 280 is appointed every five years.
  • GST Council under Article 279A came with the 101st Amendment.
  • Article 356 allows central takeover on failure of constitutional machinery, approved within two months.
  • Bommai 1994 made the proclamation reviewable and required a floor test.
  • Inter-State Council under Article 263; Zonal Councils are statutory.
  • Sarkaria and Punchhi Commissions recommended restraint in using Article 356.

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